Today's Law As Amended


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AB-1277 Transportation projects: oversight committees.(2019-2020)



As Amends the Law Today


SECTION 1.

 Chapter 21 (commencing with Section 2710) is added to Division 3 of the Streets and Highways Code, to read:

CHAPTER  21. Transportation Infrastructure Oversight Committees
2710.
 For purposes of this chapter, the following definitions apply, unless expressly stated otherwise:
(a) “Administering agency” means a public agency principally tasked with administering, planning, developing, and operating a transportation project.
(b) “Megaproject” means a transportation project with total estimated development and construction costs exceeding one billion dollars ($1,000,000,000).
(c) “Project oversight committee” means the committee created pursuant to Section 2712 to implement a project oversight and project control process for a megaproject.
2711.
 (a) To ensure that an administering agency manages the risks associated with a megaproject, the agency shall, at a minimum, take all of the following actions:
(1) Establish a comprehensive risk management plan that clearly defines roles and responsibilities for risk management and addresses the process by which it will identify and quantify project risks, implement and track risk response activities, and monitor and control risks throughout the duration of the project.
(2) Qualify the effect of identified risks in financial terms.
(3) Develop and maintain documents to track identified risks and related mitigation steps.
(4) Regularly update its estimates of capital and capital outlay support costs.
(5) Regularly reassess its reserves for potential claims and unknown risks, incorporating information related to risks identified and quantified through its risk assessment process.
(6) Regularly integrate estimates for capital, capital outlay support costs, and contingency reserves into a projectwide report.
(b) The requirements contained in subdivision (a) shall be deemed to have been satisfied if an administering agency is undertaking similar activities for a megaproject as required by a state or federal agency.
2712.
 (a) (1) An administering agency shall establish a project oversight committee for a megaproject for all of the following purposes:
(A) Reviewing project status, costs, and schedules.
(B) Resolving project issues.
(C) Evaluating project changes.
(D) Developing and regularly updating cost estimates and risk assessments for the project.
(E) Providing project direction.
(2) The project oversight committee shall be established after 30 percent of the design of the project is completed but before the administering agency solicits bids for construction.
(b) The project oversight committee shall be subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code) or the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), as applicable.
(c) The project oversight committee shall be composed of at least three directors, or their designees, with one member each from the administering agency and two other public agencies involved in the project. If there are fewer than two other agencies involved in the project, the number of members required by this subdivision shall be reduced accordingly.
(d) Expenses incurred by the public agencies for costs directly related to duties required by this section shall be reimbursed by the administering agency.
(e) The administering agency shall provide the project oversight committee any and all information that the project oversight committee requests to carry out its responsibilities.
(f) The requirement contained in subdivision (a) shall be deemed to have been satisfied if an administering agency has established a project oversight committee for all of the purposes listed in that subdivision as required by a state or federal agency.
2713.
 (a) If a project oversight committee is established pursuant to Section 2712, the administering agency shall provide quarterly reports to the project oversight committee, including, but not limited to, the construction status, actual expenditures, and forecasted costs and schedules for the project.
(b) (1) The project oversight committee shall provide annual reports to the commission.
(2) The reports shall include details of the megaproject and all information necessary to clearly describe the status of the project, including, but not limited to, all of the following:
(A) A progress report.
(B) The baseline budget for capital and capital outlay support costs.
(C) The current or projected budget for capital and capital outlay support costs.
(D) Expenditures to date for capital and capital outlay support costs.
(E) A comparison of the current or projected schedule and the baseline schedule.
(F) A summary of milestones achieved during the previous year and any issues identified and actions taken to address those issues.
(3) The report required by this subdivision shall no longer be required beginning in the year following completion of the megaproject.
SEC. 2.
 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.